What was the total CAM expense for Gold Star for the year ended December 31, 2022?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
espectively.
NOTE 14 - LEASES
The Company has signed twenty-four operating leases for which right of use assets were recorded on the consolidated balance sheets of the Company. As of December 31, 2024, 2023, and 2022, six leases are for buildings, nine leases are for equipment and furniture, and nine leases are for land. These leases expire on various dates through September 2048. In addition, the Company also has various operating leases that are
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the total CAM (Common Area Maintenance) expense for the year ended December 31, 2022, was $42,732. This figure reflects the expenses Gold Star incurred for maintaining common areas, which are typically shared spaces within a leased property.
For a prospective franchisee, understanding CAM expenses is crucial as these costs can significantly impact the overall operating expenses of the franchise. CAM expenses usually cover items such as landscaping, parking lot maintenance, security, and other shared facility costs. Franchisees should carefully review their lease agreements to understand how CAM expenses are calculated and allocated, as these can vary depending on the location and lease terms.
It's also worth noting the trend in CAM expenses over the years. While the CAM expense was $42,732 in 2022, it increased to $51,275 in 2023 and decreased to $29,285 in 2024. This fluctuation highlights the importance of budgeting for potential changes in these expenses and understanding the factors that drive these changes, such as increased maintenance needs or changes in property management practices. Franchisees should discuss these fluctuations with Gold Star to better understand the reasons behind them and to anticipate future costs.
Overall, while CAM expenses represent a relatively small portion of Gold Star's total lease expenses, they are a recurring cost that franchisees need to account for in their financial planning. Understanding the historical trends and the factors influencing CAM expenses can help franchisees better manage their operating budgets and ensure the financial health of their franchise.